Youths in Nyahururu have expressed mixed reactions towards the hustler fund a day after its launch by the President William Ruto.
During a spot check by KNA to various youths, one Chris Mburu said that the 14 days’ repayment period was a short time and that would mean many youths would end up defaulting.
“The hustler fund is good because unlike a bank or shylock, there is no collateral needed but 14 days is a short time,” he said.
“Many youths get loans from mobile apps because they are not engaged in stable income generating activities and I don’t think many will be able to repay the amount on time. A month would be good,” added Mburu.
Others said that the amount was so little to even cover any meaningful businesses. Grace Njeri, a fruit vendor, said that the minimum amount of Sh500 was very low and could only be borrowed for consumption but not to boost businesses.
She at the same time said that she had tried borrowing the amount immediately after it was launched and she cited a lot of delays thereby questioning its reliability.
“Sh500 is some small money. You cannot borrow such an amount to boost a business. Since the money was meant for hustlers to invest, where do you invest and recoup your investment within 14 days,” she wondered.
“Many will be borrowing to consume or pay other outstanding loans. The minimum amount should have been Sh5000,” added Njeri.
Others said that the free money from the government would encourage a lot of youths to indulge in gambling and drugs using the money from the Hustler Fund.
On the other hand, some youths expressed optimism that the money would help them in boosting their businesses.
A boda operator identified as John Ngugi said that the fund would be very beneficial to him and other riders as it would help them repair their motorcycles and fuel them in case they got faulty or run out of fuel when business is slow.
“The fund is good and this means that the president is fulfilling his campaign promises faster than we could even imagine. The amount will help a lot of bodaboda operators to fuel or pay the daily targets to those companies that gave us the bikes on loans when the business is slow,” he said.
“We can always borrow and repay. I also believe that the amount will gradually increase when you pay on time,” said Ngugi.
The hustler fund was launched yesterday. Personal loans being offered on the Fund are between Sh500 and Sh50000, with the repayment period being 14 days.
The Fund is dedicated to the capitalisation of micro, small and medium-sized enterprises through chamas, SACCOs and cooperatives.
